PG&E gets court approval for $24.5 billion in restructuring agreements

By Caroline Salls

Pittsburgh, Dec. 20 – PG&E Corp. obtained court approval to enter restructuring support agreements with representatives of wildfire victims’ tort claims and subrogation claimants, according to orders filed Thursday with the U.S. Bankruptcy Court for the Northern District of California.

As previously reported, PG&E amended the tort claimants’ agreement on Dec. 17 in order to reaffirm the parties’ continued support of the $13.5 billion settlement.

PG&E said the amendment eliminates a provision that would automatically terminate the tort claimants’ restructuring support agreement if the governor of California advises the company that its Chapter 11 plan does not, in his judgment, comply with Assembly Bill 1054 and the plan was not modified in a manner acceptable to the governor by Dec. 17.

Under an amended plan of reorganization that incorporates both deals, wildfire victims and some limited public entities will be compensated from a trust funded for their benefit in the amount of $13.5 billion, and insurance subrogation claimants will be compensated from a trust funded for their benefit in the amount of $11 billion.

The plan also pays out $1 billion in full settlement of the wildfire-related claims of public entities like cities and counties and pays in full with interest all pre-bankruptcy funded debt obligations, all pre-bankruptcy trade claims and all pre-bankruptcy employee-related claims.

The electric and natural-gas utility is based in San Francisco. The company filed bankruptcy on Jan. 29, 2019 under Chapter 11 case number 19-30088.

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